The equivalent simple annual interest rate implicit in the minimum lease rentals. This is not the same as the interest rate implicit in a lease, which reflects the compounding effect.
The equivalent annual simple interest rate implicit for minimum lease rentals. (Not the same as Net Monthly Lease Rate Factor.)
The simple corresponding interest rate less depreciation and residual.
A percentage used by some lessors to describe the rent charge portion of your monthly payment. No federal standard exists for calculating the lease rate. Any rates or factors used in lease calculations do not have to be disclosed under federal law. If a lease rate is given as a percentage in an advertisement or on any lease form, the ad or form must also state, "This percentage may not measure the overall cost of financing this lease."
The periodic payment to a lessor for the use of assets.
A rate widely used in the leasing industry. Computed by dividing the monthly payment by the cost basis of the lease. Also called the lease rate factor.
This is the simple interest equivalent interest rate excluding depreciation and residual, if any.
This is simply the interest rate used to calculate the lease payment. Sometimes referred to as Lease Factor.
The periodic rental payment to the lessor for the use of the asset. The lease rate is primarily determined by the total cost of the asset, the duration of the lease and the interest rate level.
The interest rate charged on the lease.
The monthly finance cost of a lease, similar to the interest rate on a conventional loan. Determined by the money factor.